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Enron

This article is about the corporation. For the documentary, see Enron: The Smartest Guys in the Room. For the play, see Enron (play). For the accounting scandal, see Enron scandal.

Enron Corporation
Company typePublic
IndustryEnergy
Predecessor
FoundedJuly 16, 1985 (1985-07-16) in Omaha, Nebraska, U.S.
FounderKenneth Lay (for the Houston National Gas branch)
DefunctMarch 1, 2007 (2007-03-01)
November 28, 2016 (2016-11-28) (as Enron Creditors Recovery Corporation)
FateChapter 11 bankruptcy (as an effect of accounting fraud)
Successor
Headquarters
1400 Smith Street
Houston, Texas
,
United States
Area served
United States, India, Caribbean, Brazil, Canada, and Mexico
Key people
ServicesEnergy
Revenue$100.789 billion
$979 million
Total assets$67.503 billion
Number of employees
20,600 (2000)
DivisionsEnron Energy Services (EES)
Enron Xcelerator
Websiteenron.com at the Wayback Machine (archived 20 June 2000)

Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000.[1] Fortune named Enron "America's Most Innovative Company" for six consecutive years.

At the end of 2001, it was revealed that Enron's reported financial condition was sustained by an institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Enron has become synonymous with willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the enactment of the Sarbanes–Oxley Act of 2002. The scandal also affected the greater business world by causing, together with even larger fraudulent bankruptcy WorldCom, the dissolution of the Arthur Andersen accounting firm, which had been Enron and WorldCom's main auditor for years.[2]

Enron filed for bankruptcy in the Southern District of New York in late 2001 and selected Weil, Gotshal & Manges as its bankruptcy counsel. Enron emerged from bankruptcy in November 2004, under a court-approved plan of reorganization. A new board of directors changed its name to Enron Creditors Recovery Corp., and emphasized reorganizing and liquidating certain operations and assets of the pre-bankruptcy Enron.[3] On September 7, 2006, Enron sold its last remaining subsidiary, Prisma Energy International, to Ashmore Energy International Ltd. (now AEI).[4] It is the largest bankruptcy due specifically to fraud in United States history.[5]

  1. ^ "Fortune 500: Enron". Fortune.
  2. ^ "Andersen guilty in Enron case". BBC News. June 15, 2002. Retrieved May 2, 2010.
  3. ^ "Enron Creditors Recovery Corp. – About ECRC". Enron. December 6, 2011. Archived from the original on December 6, 2011. Retrieved April 9, 2019.
  4. ^ "Ashmore Energy International Acquires Prisma Energy International". Business Wire. September 8, 2006. Retrieved August 28, 2014.
  5. ^ "The 20 Biggest Bankruptcies in United States History | TitleMax". www.titlemax.com. May 17, 2019.

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